GDPR and Harri

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Next month, we all face a major regulatory change that will impact the way we manage and store candidate and employee data, due to the General Data Protection Regulation (GDPR).

As these new regulations have the potential to negatively impact the processes of attracting talent and manage hiring, we’re working hard to ensure we are keeping our clients ahead of these changes.

What is the GDPR?

The GDPR is EU-wide legislation that will replace the Data Protection Act 1998 in the UK. Intended to strengthen and unify data protection for all individuals within the European Union (EU), it also addresses the export of personal data outside the EU. The GDPR aims primarily to give control back to citizens and residents over their personal data and to simplify the regulatory environment for international business by unifying the regulation within the EU.

Although many companies have already adopted privacy processes and procedures consistent with the directive, the GDPR contains a number of new protections for EU data subjects and threatens significant fines and penalties for non-compliant data controllers and processors once it goes into effect.

While not yet required for the Americas, GDPR requirements apply to each member state of the European Union, aiming to create more consistent protection of consumer and personal data across EU nations.

What is the Purpose of the GDPR?

The purpose of the GDPR is to provide a standard set of data protection laws across all member countries so that EU citizens can clearly understand how their data is being used or raise any complaints.

What are the key privacy and data protection requirements of the GDPR?

  • Requiring the consent of subjects for data processing
  • Anonymizing collected data to protect privacy
  • Providing data breach notifications
  • Safely handling the transfer of data across borders
  • Requiring certain companies to appoint a data protection officer to oversee GDPR compliance

What is a Data Controller, and What is a Data Processor?

  •  Data Controller - A controller determines the purposes and means of processing personal data.
  • Data Processor - A processor is responsible for processing personal data on behalf of a controller.

Who is the Data Controller in the Harri-Customer relationship?

Job Seekers set up personal recruitment profiles within Harri, which the Job Seeker can use to apply for jobs with any and all of our Customers. This data is controlled by Harri until the Job Seeker deletes the recruitment profile.

This is important: because of GDPR, a restaurant doesn’t have explicit consent to hold on to an application (in fact, restaurants should discard them after 6 months). Most restaurants will either chuck an application immediately, or hold on to it for too long, thus putting themselves at risk.

Harri saves you this hassle. How? Because our members (job seekers) are the ones applying to jobs. Since they have opted to explicitly open an account and create a profile on Harri, their data remains with us until they opt out. This means that, as an employer, you can reach out to Harri candidates that applied years ago.

The data is shared with our Customers when a Job Seeker applies for a role with the Customer. The Customer then becomes a controller with regards to the recruitment profile and any other personal data of the Job Seeker.

As Harri and our Customers both make decisions on how the Personal Data of a Job Seeker is processed, both Harri and our Customer are deemed to be Joint Controllers.

What is Harri doing to ensure compliance?

Harri takes the protection of personal data very seriously, as it underpins everything we do. We continue to take advice from our legal partners, and we have enlisted the support of industry experts to ensure that we remain compliant.

Here is how we’ll support our customers:

  • An updated Data Processing Agreement (DPA) to reflect GDPR requirements and ensure compliant data transfer with storage outside of the EU.
  • New product capabilities to assist in compliance when users request that you delete or suppress data.
  • Allowing you direct communication to our Data Protection Officer (DPO) simply by emailing dpo@harri.com.

We look forward to assisting your company in their mission to protect the privacy rights of your employees.

NRD CAPITAL ANNOUNCES MINORITY INVESTMENT IN HARRI, LLC

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Private Equity Firm Invests in Next Generation Total Talent Solution for Hospitality Industry

ATLANTA, GA – April 17, 2018 – NRD Capital, an Atlanta-based private equity fund, is pleased to announce its minority investment in Harri, LLC (“Harri”).  The technology company, whose mission is to revolutionize employee-facing technology in service industries through its Workforce OS™ platform, was launched in 2013 by Luke Fryer, and is based in New York City.

The newest technology company to join NRD Capital’s diverse portfolio, the Harri Workforce OS™ platform streamlines the full breadth of the employee lifecycle. A unique aspect of the platform is that it has been purpose built for service industry verticals, with an initial focus on the hospitality..

The software offers a full suite of talent-technology solutions, offer over 30 modules in all, such as candidate sourcing, hiring and onboarding, labor management, learning and performance management. Harri’s clients currently include restaurants, hotels and other hospitality businesses. With nearly 500,000 job seekers enrolled and 8,300 employers, Harri’s innovative and intuitive platform maximizes efficiency for all parties.

“As leaders in the franchise and hospitality industries, NRD Capital knows the value in acquiring, retaining, and optimizing top-talent, and we’re confident our investment in Harri will assist in furthering the next generation of total talent solutions for the hospitality industry,” said Aziz Hashim, NRD Capital Founder and Managing Partner.

“In hospitality, people are our greatest resource, but also our greatest challenge. Hospitality businesses of all sizes are grappling with the need to offer their employees technology that is built to embrace labor related challenges, and Harri was built to solve that problem“ said Luke Fryer, CEO of Harri. "This round of funding will allow us to accelerate our investment in R&D and go to market capabilities. It will also support the expansion of marketplace and business intelligence capabilities, plus help us grow the community.”

Harri joins NRD’s extensive portfolio of companies across the hospitality, service/retail and technology industries. For more information about NRD Capital, please visit www.nrdcapital.com. For additional information about Harri, please visit www.harri.com.

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About NRD Capital

NRD Capital invests in brands that offer superior products or services and compelling unit-level economics in order to help them strategically grow through the power of franchising. The fund was founded in 2014 by Aziz Hashim, one of the world's leading experts on franchising, with the goal of leveraging operational and financial experience to position high quality brands for accelerated but responsible growth. The differentiated private equity fund takes a unique approach to investing, applying operating expertise and leveraging its wide network of franchisees, in addition to infusing capital in its portfolio companies.

A Lawyer's Take on Tip Sharing

The Department of Labor recently issued a proposed rule that could change the way tips are shared among restaurant staff. We’ve partnered with attorney Sid Chary of Kalyan Law Firm, a boutique business law practice focused on the hospitality and creative industries, to explore the legal insights surrounding this issue. 

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According to a recent New York Post article, a recent federal Department of Labor proposal could change how tips are shared among staff at service businesses like restaurants or bars in New York.  The Department of Labor (DOL) proposal would give restaurant owners flexibility in determining how tips left by customers are divvied out among restaurant staff, including restaurant workers like dishwashers or line cooks that would not typically receive tips under current DOL regulations. 

The DOL proposal would change a rule adopted by the Obama DOL that held that tips are the exclusive property of waiters.  The notice of proposed rule-making filed in the Federal Register by the DOL’s Wage and Hour Division on December 5, 2017 would allow tips to be shared with employees not currently entitled to share in tip pools through federal or state law.  For instance, under current New York law, tips can only be shared by non-managerial employees. 

In 2011, under the Obama administration, the DOL issued regulations that provided that tipped workers like workers, not restaurant owners or operators, owned the gratuities left by customers for purposes of the Fair Labor Standard Act.  In passing these regulations, the agency had essentially banned the practice commonly known as tip-pooling, in which all employees would receive a pro-rata portion of the tips left by restaurant customers over the course of the evening. 

In justifying the proposed change, the Trump administration stated that there was a growing disparity between the earnings of front-line restaurant workers like waiters and those in the back, like dishwashers or line cooks.  The proposal was intended to equalize that playing field by allowing restaurant owners and operators more flexibility in determining how tips are shared among both frontline and backline workers. 

The proposed rule generated more than 374,000 comments in the 30-day comment period under federal law after it was published in the Federal Register.  It is unclear whether the rule will be revised after the outpouring of public comments, but the rule will no doubt generate controversy regardless of whether the DOL revises it or not before issuing a final version of the rule.

Should you have any questions, please do not hesitate to contact Kalyan Law Firm to discuss your specific matter.

About Kalyan Law Firm: 

Harri is happy to announce that the Service First blog will now feature regular legal content from our partners at Kalyan Law Firm! We've partnered with attorneys at Kalyan Law Firm to bring you some great legal insights that will keep you in the know.  Kalyan Law Firm is a boutique business law firm focused on the hospitality and creative industries, and related practices.  With offices in New York City and Austin, TX, we offer extensive experience in a wide variety of transactional, corporate, and administrative matters.  This includes a comprehensive technical understanding of how to navigate various Federal and State regulatory agencies such as the U.S. Alcohol and Tobacco Trade and Tax Bureau, the Food and Drug Administration, and the New York State Liquor Authority and Texas Alcohol Beverage Commission; municipal agencies such as Depts. of Buildings, Health and Mental Hygiene and Consumer Affairs and the Board of Standards and Appeals; and local organizations such as community boards, block associations and neighborhood councils.  We offer a broad range of legal services for hospitality companies and entrepreneurs, breweries, wineries, distillers, importers, food and beverage manufacturers and retailers, physical cultural establishments such as gyms and yoga studios, as well as service providers to those industry members.   Additionally, we provide legal counsel to creatives such as musicians/songwriters, visual artists, filmmakers/actors/screenwriters, talent managers and production companies. Finally, our firm can help with any immigration needs and we handle employment visas, green card applications, and investment based visa petitions. For more information, check out the firm's website atwww.kalyanlawfirm.com and if you have any specific questions, please e-mail the firm at hello@kalyanlawfirm.com.  

Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Hari Nathan Kalyan, Esq. P.C. (dba “Kalyan Law Firm”) or its attorneys, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.

Harri Announces Partnership with BenefitMall

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We’re thrilled to announce our partnership with BenefitMall, a leading provider of employee benefits and payroll services!

Mutual BenefitMall and Harri hospitality clients will have access to a fully-integrated solution that allows full control and visibility over every stage of an employee’s lifecycle.

This collaboration integrates Harri's Workforce OS™ with BenefitMall's PayFocus Pro, allowing clients to streamline every aspect of employee management. Designed exclusively for the hospitality industry, customers utilizing the tool have access to intelligent scheduling, live performance management, and a biometric time clock. 

“BenefitMall is excited to offer our hospitality clients with a talent solution tool that fully integrates with our current payroll platform,” said Kevin Thornton, BenefitMall senior vice president, payroll sales. “This partnership with Harri will allow our clients a simplified way to track and manage employees, as well as discover new talent to meet their company’s needs.”

The hospitality industry is unlike any other, and requires a talent tool designed specifically for its needs. 

“Through our partnership with BenefitMall, we will be able to easily assist more operators and HR professionals in their hiring and employee management practices," said Luke Fryer, CEO and Founder of Harri.

Headquartered in Dallas, BenefitMall partners with a network of 20,000 Brokers and CPAs to deliver employee benefits and payroll services to more than 200,000 small and medium-sized businesses. By combining payroll and benefits, BenefitMall empowers Trusted Advisors to develop the best employee programs while maintaining compliance with government regulations and Health Care Reform.

Our innovative and user-friendly system allows businesses to source, hire, and manage their talent. With Harri, hospitality brands can easily implement top comprehensive team scheduling, communication, and labor cost management technology built exclusively for the industry.

Learn more!

Blockchain, Cryptocurrency, and the Hospitality Industry

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What is Blockchain?

Blockchain is a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. In other words, a continuously growing list of records, called blocks, are linked and secured using cryptography.

Blockchains are secure by design, and eliminate a middleman (big banks or government) - which makes them enticing for certain industries.

How is Blockchain Tied to Cryptocurrency?

Simply put, Blockchain is the technology that enables the existence of cryptocurrency.

Cryptocurrency is a medium of exchange, such as the U.S. dollar. The main difference is that it is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.

You’ve probably heard of Bitcoin, which is one of the oldest and most well-known cryptocurrency. Others include Ethereum, Ripple, Litecoin, and Monero.

What Industries will be Disrupted?

Technically, any industry that deals with data or transactions of any kind could be disrupted by blockchain technology. But there are some industries where it will be more prevalent. While the hospitality industry itself may not be impacted for a number of years, certain aspects of the industry could potentially be, including:

  • Payments & money transfers

  • Cybersecurity

  • Forecasting

  • Supply chain management

  • Cloud storage

  • Loyalty programs

  • Human resources

So...What’s My Next Move?

Blockchain has been making steady progress from a startup concept to an established currency in a short amount of time - so the worst thing you can do as a business owner or operator is sit passively on the sidelines.

Some retailers and services have already been accepting Bitcoin as a form of payment for some time. As cryptocurrency grows in popularity and becomes more widely accepted as a legitimate form of currency, restaurant operators need to simply be aware. Though too new for (many) restaurants to move forward with accepting this form of currency, it is a hot topic across many industries and worth keeping an eye on.

With global business and the economy in a good place, more companies are willing to take calculated risks. Even if the industry is light years away from accepting cryptocurrency, it’s important to educate yourself on innovations (not limited to blockchain) and stay curious about the latest technologies and trends in the market.